BWX Limited’s [ASX: BWX] share price has increased by 40% at time of writing since opening this morning.
Their shares are currently trading at $6.18, up from $4.41 prior to the trading halt on Friday, 18 May.
BWX is a developer, manufacturer, distributor and marketer of skin and haircare products, with a strong focus on the natural segment of the market.
Why has BWX’s share price increased?
BWX’s share price skyrocketed after returning to normal trading this morning, following an announcement that revealed they had received a proposal to acquire 100% of the shares in company.
The offer was an ‘unsolicited preliminary, non-binding, indicative and conditional proposal from John Humble (CEO and Managing Director) and Aaron Finlay (Finance Director) in partnership with Bain Capital Private Equity, L.P. and its affiliates (Bain Capital)’.
The Indicative Proposal put forward was for $6.60 per share, or a scrip alternative in a newly incorporated acquisition entity of 75% shares and 25% cash.
The board of the natural beauty company has established an Independent Board Committee (IBC) comprising of Denis Shelley (Chairman), Ian Campbell and David Fenlon to consider and respond to the offer.
The proposal is subject to due diligence by Bain Capital and unanimous recommendation by the IBC.
What can we expect to see next?
Moving forward, IBC will keep shareholders informed, however there is no assurance that the Indicative Proposal will result in any transaction worthy of being put to shareholders or being announced.
In the meantime, the IBC has recommended that shareholders take no action in response to the offer.
For Money Morning
PS: BWX Limited has had huge growth since listing on the ASX in 2016, the company’s share price has increased by over 160%. Our analyst Sam Volkering believes that the biggest potential for huge gains is in the small-cap sector. If you’re interested in learning more, check out his free report ‘Top Three Aussie Small-cap Stocks’.